Spending to much much time researching companies can be hazardous to your wealth.  The more
    pointless details you know the more likely you are become attached.  Try to ascertain the most important
    information quickly and move on to the next one.  We think that knowing important details about many
    companies, is better than knowing one up side down.  Technical analysis is just as important as is lack of

There is no way to determine a tiny stocks likelihood of devastation, and most companies on the OTC BB
are by definition on the brink.  Without institutional interest in these issues there aren't enough people to
demand answers.  The only information they provide is forward looking statements and they never give too
many clues as to business conditions.  It is important to read the disclaimer about forward looking
statements as they often contain industry specific examples and probabilities of increasing their customer
base.  Always be ready to sell these stocks in a heartbeat if disaster strikes and time is of the essence.  If
you miss a big down shift due to horrible news by a half a day or so, you typically still have a chance to
average down and get out at break even within a day or so.  It is just important to be on top of it and dissolve
your position as soon as possible.  This is only for news that shifts the company fundamentally in the
wrong direction.

Valuing penny socks can be an almost impossible task.  Traditionally one looks at P/E ratios against
historic valuations to judge a company's cheapness.  With penny stocks, many have negative earnings
which leave this number useless.  What we need to do is find the industry that your stock is in and examine
what the average earnings per share are.  Many industries have negative earnings as the norm such as
technology or biotech.  When comparing a penny stocks earnings per share to it's industry average one
must look at the number of shares outstanding and market cap of the stack and compare those to industry
averages as well.  Many penny stocks don't seem to fit in any industry because they haven't been created
yet, in this case try and get as close as you can.
    Time is on Your Side
    PSW Staff
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